It's not racist because it's not based on ehnicity in any way. It's based on who is at war with the State or Israel or sponsoring terrorist activity against the state. Obviously war is bad, but it has its consequences. Arab Israelis should realize that the Arab world is at war with them. The Arab members who called this racist either do not understand the significance of being at war, or don't truly view these enemy countries as being at war with Israel and at war with them as Israelis. This law is not racist at all.
Suspect Bangkok bomber arrested, found with possible bomb-making materials (Reuters)
from the article: Arab MKs: Bid to bar trips to enemy states is 'racist'